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http://www.salon.com/2013/12/01/how_to_beat_libertarians_on_the_economy/

How to beat libertarians on the economy
[image: How to beat libertarians on the economy]

When it comes to debating conservatives about the future of the American
economy, progressives are at a disadvantage. Conservatives are united
behind a single vision of the ideal economy, while progressives are divided
among three rival schools of economic strategy.

On economics, unlike on social issues or foreign policy, there is no
distinction between conservatism and libertarianism. The mainstream right’s
economic vision is libertarian, pure and simple: smaller government, lower
taxes, free trade and deregulation. Add to this the goal of replacing
universal, tax-financed social insurance programs such as Social Security
and Medicare with means-tested vouchers to subsidize for-profit providers
of retirement savings and medical insurance and medicine, and you have
pretty much the whole right-wing economic program.

Nothing like that consensus exists to the left of center. Instead, three
distinct and conflicting traditions of political economy coexist under the
rubric of liberalism or progressivism. The three are small producerism,
unionism and economic rights.

The three schools of center-left economic thought have coexisted, now as
rivals and now as allies, since the early 1900s. Each has had its own
constituency or social base. Small producerism reflects the interests and
values of family farmers and small business owners. Unionism is promoted by
organized labor. And economic rights, embodied in universal policies, have
been emphasized by reformers and intellectuals, based in the educated
professional class.

Small producerism has its roots in American agrarian republicanism. It is
the Jeffersonian of the left, associated with William Jennings Bryan and
Louis Brandeis and later with Congressman Wright Patman of Texas. The small
producerists despised what Brandeis called “the curse of bigness” and
sought to create a decentralized republic of self-reliant “yeomen”– small
farmers, craftspeople and shopkeepers. Their suspicion of big business and
big finance distinguishes producerists of the left from conservatives who
attack regulation and taxes in the name of small business.

The unionist vision of the ideal economy was and is radically different
from the producerist vision. Rather than break large corporations into
small ones by means of antitrust law, unions seek to bargain with companies
for decent wages and benefits.
------------------------------
------------------------------

The third tradition on the center-left, the tradition of economic rights,
has always been in tension with small-producer populism and unionism. Like
unionism, and unlike nostalgic populism, economic-rights progressivism is
at ease with the modern world in which most workers are wage-earners, not
independent “yeomen.” But unlike unionism, economic-rights progressivism
thinks that the best way to ensure adequate wages and decent benefits is by
means of direct, universal legislation on behalf of all citizens, not by
means of collective bargaining among employers and unions. In the words of
Frances Perkins, Franklin Roosevelt’s Secretary of Labor, “I’d rather pass
a law than organize a union.” The classic statement of economic-rights
progressivism was Franklin Roosevelt’s call in 1944 for an “Economic Bill
of Rights <http://www.fdrheritage.org/bill_of_rights.htm>.”

The New Deal coalition of the mid-twentieth century brought together all
three schools, along with their supporters — farmers, unionized workers and
middle-class reformers. And the New Deal policy synthesis combined elements
from all three programs — subsidies for farmers and small business loans
for the small-producer school, pro-union legislation for the unions, and
universal social insurance entitlements like Social Security and
unemployment insurance and Medicare for the economic-rights school.

All three schools continue to be represented in center-left discourse. The
decentralist, small-is-beautiful tradition of producerism is found today in
the “locavore” movement, opposition to chain stores like Wal-Mart, and the
kind of environmentalism that romanticizes tiny “organic” farms and urban
gardens. Members of labor unions continue to play a role in progressive
activism and campaign finance far out of proportion to their numbers. And
middle-class reformers continue to agitate for universal reforms, including
a minimum wage that is a living wage and expanded Social Security.

But this diversity is a source of weakness, not of strength, for the
center-left. Notwithstanding their noble intentions, the small-producerist
and unionist visions of the economy divert attention from the central
struggle of our time, which is, or should be, the battle between
economic-rights progressivism and libertarian conservatism.

Small producerism is even more obsolete in the early twenty-first century
than it was in the early twentieth. Between 1950 and 2013, the number of
self-employed Americans dropped from 25 percent to 7 percent.
<http://rt.com/usa/recession-number-americans-self-employed-787/> And that
7 percent includes a significant number of affluent Americans who are
really investors or professionals, rather than small business owners.

The decline in self-employment should not be lamented. On the contrary, it
is a sign of progress. Primitive Third World economies have much higher
levels of self-employment and small business than advanced, First World
nations.<http://www.american.com/archive/2009/entrepreneurship-the-start-ups-we-don2019t-need/>
Economic
progress involves the substitution of machinery for labor — largely by big,
capital-intensive firms that can afford expensive equipment and drive out
smaller competitors. At the same time, many people in developed countries
prefer steady wages and benefits at medium-to-large firms to the
uncertainties of self-employment. That is why self-employment is lower not
only in the U.S. but also in Europe and the developed nations of East Asia
than it is in the backward economies of the global South, with their
peasants and peddlers.

The American center-left should ask itself how much energy it wants to
devote to helping the 7 percent of Americans who are self-employed, rather
than the overwhelming number who work for somebody else.

There are tough questions to ask about the unionist model of the economy,
too. In 2012, total union membership in the U.S. had dropped to 11.3
percent — the lowest level since
1916<http://www.nytimes.com/2013/01/24/business/union-membership-drops-despite-job-growth.html?_r=0>.
Much of that consisted of public-sector union members. Private-sector union
membership is just 6.9 percent of the workforce.

The political clout of American unions has diminished so much that minor
pro-union legislation — “card check” — could not be passed even when the
Democrats recently controlled both houses of Congress and the
presidency. Throughout
the industrial world, union membership is
declining,<http://www.cepr.net/documents/publications/unions-oecd-2011-11.pdf>
albeit
in some cases from much higher levels. Even if, against all odds, the
political climate changed in favor of unions, it would take decades or
generations for organized labor to regain anything like the one-third of
the workforce it claimed in the 1950s.

But the problems of wages and economic security are urgent. That leaves
economic-rights progressivism as the most realistic option for the
twenty-first century American center-left.

Only direct legislation can serve as a remedy to the evils of low wages and
inadequate benefits. Through the government, America’s citizenry must
insist that all businesses in the U.S. pay a living wage. And employer
benefits should be gradually phased out and replaced by universal, generous
social insurance — not only universal health care and an expanded Social
Security system, but also a new federal system of family leave, paid for by
payroll taxes.

Universal policies for all Americans as a matter of right should be the
progressive agenda of our time. The sooner the center-left abandons
well-intentioned but anachronistic strategies and rallies behind
contemporary economic-rights progressivism, the sooner the battle for the
future of America can be taken successfully to the libertarian right.
 <http://www.salon.com/2013/12/01/how_to_beat_libertarians_on_the_economy/>




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